Future Bright For TriNet Group: A Deep Dive Into Its Solid Growth Prospects By Needham Analyst

Needham analyst Kyle Peterson initiated coverage on TriNet Group Inc TNET at a Buy rating and a price target of $115.
The analyst is bullish on TNET's leading competitive positioning in the SMB market and believes solid core PEO offerings and boosting HR services suite positions it well for long-term growth.
Peterson believes TNET has an attractive growth algorithm, with new product launches and higher pricing to drive high-single-digit organic growth.
The analyst sees the company's guidance related to insurance cost normalization and future buyback activity as conservative and projects an upside of $1.00+ to its FY24 EPS estimate if it maintains its Q1 2023 share buyback pace.
Peterson projects revenues of $4.95 billion and EPS of $6.17 for 2023 and $5.54 billion and $6.25, respectively, for 2024.
Price Action: TNET shares are higher by 2.61% at $91.13 on the last check Friday.

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